Mexico’s Sheinbaum Threatens To Activate Opposition Within US Borders

Amid L.A. riots, Mexican president also hails migrants as “heroes.”

Mexican President Claudia Sheinbaum is speaking out forcefully against a proposed U.S. remittance tax that she says could deal a serious blow to millions of Mexican families. In a recent address, Sheinbaum warned that Mexico would “mobilize” diplomatically — and potentially beyond — if Washington proceeds with the measure.

The policy in question, passed by the U.S. House of Representatives last month as part of the One Big Beautiful Bill Act, would impose a 3.5% excise tax on remittances sent by noncitizens. The goal, according to supporters, is to discourage illegal immigration and recover public costs associated with it.

A Key Economic Lifeline at Risk

Remittances are a cornerstone of Mexico’s economy. In 2024 alone, they totaled approximately $64.7 billion, accounting for nearly 4% of the country’s GDP. Many Mexican households rely on these funds for basic needs, education, and health care.

Sheinbaum characterized the proposal as double taxation, pointing out that many remittance senders already pay U.S. taxes. She also said the tax could violate the 1992 U.S.-Mexico tax treaty, which was designed to prevent exactly this kind of financial overlap.

Mexico Deploys Lobbying Effort

In response, Sheinbaum’s government is taking an aggressive stance:

• Mexican lawmakers have been sent to Washington, D.C. to lobby against the tax.
• Sheinbaum is urging Mexican nationals in the U.S. to raise their voices via letters, petitions, and social media.
• She warned of broader mobilizations if the tax becomes law, hinting at protests and other forms of pressure.

More recently, Sheinbaum addressed the mass protests and violent clashes in Los Angeles, following the arrest of suspected illegal immigrants in raids carried out by U.S. Immigration and Customs Enforcement (ICE) officers. (RELATED: Border Czar Issues Stark Warning As ICE Protests Turn Dangerous)

As the Daily Mail reported, she referred to migrants living in the United States as “heroes” while criticizing the Trump administration’s immigration policies:

‘We disagree with this approach to the migration phenomenon,’ Sheinbaum said during a press conference Sunday afternoon in San Andrés Cholula, Puebla.

‘It’s not about raids or violence, but rather working on a comprehensive reform that takes into account the Mexicans on the other side of the border,’ she added. ‘That is our position, always a call for peace, to not exacerbate any form of violent protest.’

Mexicans living in the United States are good, honest men and women who left to seek a better life for themselves and to support their families,’ she said at her press conference.

‘They are not criminals.’

U.S. Conservatives Push for Higher Rate

Some GOP lawmakers argue the 3.5% rate doesn’t go far enough. A few are calling for hikes up to 15%, framing the measure as part of a national security strategy to crack down on undocumented migration and money outflows.

However, critics on both sides of the border warn the move could backfire. A higher tax might drive remittance activity underground, fueling black-market transfers, and undercutting banks and formal financial systems.

Rising Tensions Amid Broader Security Concerns

Sheinbaum’s assertive posture marks a break from Mexico’s traditionally non-interventionist Estrada Doctrine. With U.S. National Guard deployments and ongoing protests in cities like Los Angeles, her remarks could further strain relations between the two neighbors during a politically volatile moment. (RELATED: State Threatens Legal Action Against Trump For Defending America)

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